>> the classic way to play this is utilities, they are required to pay dividends, xlu is a utility etsould you? >> sdy. i love the index this is a good index. >> neil: do you like this market? >> not forever, but i like the market. i'm not getting out of it. >> neil: let me write that down. [ applause ] >> i'm kidding. >> stay in this market and buy. >> neil: buy low and sell high. i'm here for you. i'm kidding >> eric: health care law train wreck, harry reid now agreeing obamacare may go off the way if we don't spend more implementing it but aren't we already paying more with those new taxes? mayday, unions demanding the immediate halt to deporting illegal immigrants. does big labor have the best interests of undocumented workers in mind or is this all about saving themselves? "cashin' in", looking out for your best interests right now. i'm eric boling,

xlu is a utility. >> ben how would you play this?dy. >> do you like the market and do you think it will go like this? >> not forever. i like it. i will not get out of it >> >> not forever. mark that down. >> i am kidding. >> stay in this market and buy any dip. >> the idea i love. sell high. i am here for you. i am kidding. >> the jobless rate may be ticking down a bit but 12 million americans still out of work, unemployment benefits are way up. one state want to make it tougher for them to push the bill to ban benefits for workers and misconduct and missing too many days. proponents say this will protect benefits for people who deserve them. are they right or wrong. >> i am dave asbin. welcome to forbes on fox. we'll go with steve, and rick and rich and john and sabrina and mike. mike, is this a good law? >> david, i am not familiar with the precise details of the law. one thi

xlu, it's trading at a forward p/e of 19 1/2. if you take a look at a telecom stock like an at&t which has been a favorite among yield-seeking investors that is trading at a current p/e of 28. these are historically high valuations compared to themselves. >> that's the problem is people are basing that bubble on valuations, not on the rotation. even though we've seen a pretty good trooigs. but how can you say that the yields are going up elsewhere and it's unattractive for a 4 1/2% yield on sl? i own it. i still own it. but when does that reverse again? how on earth does that -- so treasuries move now. i do get that there's an algo out there that starlts to dump the utility space -- >> you're going to wait for that algo to kick in and be the last one out of this trade -- >> algos kick in -- i've definitely held this a little longer than i wish i had but i'm still long southern because i think it has to revert backwards now. i don't know how long that trade goes up. but you can't tell me a retiree that was looking to collect the i

finally, xle, which is the etf that tracks energy, versus the xlu, the etf that tracks the utilities. w >> out of all these pairs, this one, to me, kiss of death, but it seems to be the no brainer. >> wait, so -- neither is your answer? >> no, i think it's a no brainer to pick energy. >> okay. >> and i got to tell you, when you look at something like the utility sector, trading at this 30% premium to its long-term price to earnings ratio, as a sector, it's kind of ridiculous. you know why. it's all about investors seeking bond-like equities. that's adorable for now but not a great place to enter. something like an xle, here's a sector that was one of the worst performers in 2012, really didn't participate in the rally. crude is knocking on companies, of them, could be bought out, so, i really like the xle much better than the ewe till tips. >> when josh brown says adorable, i think of it as c condesce condescending. >> i think it was meant that way, too. >> it's kind of -- these people plowing into utilities because think they they're buying bonds -- they're going to get a volatility

if they open this xlu at a big gap down i'd be all over it for a quick reversal.ething i want to stick with long-term. >> guy? >> bottom would have been 65 today, happy birthday to the greatest. and tlt. i think yields are going back down. >> thank you for watching. see you back here monday at 5:00 for more "fast money." "options action" begins right after the break. have a great weekend. een before. this ge jet engine can understand 5,000 data samples per second. which is good for business. because planes use less fuel, spend less time on the ground and more time in the air. suddenly, faraway places don't seem so...far away. ♪ ♪ everybody has different investment objectives, ideas, goals, appetite for risk. you can't say 'one size fits all'. it doesn't. that's crazy. we're all totally different. ishares core. etf building blocks for your personalized portfolio. find out why 9 out of 10 large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus, which includes investment objectives, risks, charges and expe

xlus. they wound up selling them, but now you look at the chart. they bought them going into the bell today. >> you bought them yesterday? >> i'm long southern. for me, i'm staying long utilities because the search for yield is not over yet. >> let's get to our top trades. >> tim mentioned at the top of the show the reserve bank of australia can cut rates. every central bank in the world is basing their currency or cutting rates, yet gold won't go higher. this was the last straw. i shorted gold this morning at about 8:30 this morning, $14.52 on the august contract. it's a great risk/reward area here. i can use 1500 at my stop. >> i think the aussie dollar has gone lower. back to europe. i think you buy the cyclicals. you buy the dax trading at 15.5 times. siemen is your biggest bellwether and industrial. four times debut yield. about 11 times next year's earnings relative to a ge. >> do you have a trade on mercado libre? >> i wish i did. >> around $104 we started to fade. this stock really at 50 times earnings, i like to talk about it and some valu

. >> profits in the xlu. >> it's not fast money. it's out there in september.le time to be right. >> he didn't say bang, which is good. >> power lunch begins right now. >> hi, everybody. tyler is out today. larry kudlow is in the house. we have a lot on our agenda. who knew what? and when did they know it? after the irs. >> we have the latest. that's coming up. and it's still the economy, stupid. really. china, of course, and the fed all playing tug of war w

>> xlu has had a tough few weeks, don't fight the tape on this one, wait until you get a bit of a bottom-- >> simon? >> yeah, you know, so-so earnings last week, in a tough spot, more on the construction equipment versus the farming equipment. >> final trades are next. [ kitt ] you know what's impressive? a talking car. but i'll tell you what impresses me. a talking train. this ge locomotive can tell you exactly where it is, what it's carrying, while using less fuel. delivering whatever the world needs, when it needs it. ♪ after all, what's the point of talking if you don't have something important to say? ♪ see, i knew testosterone could affect sex drive, but not energy or even my mood. that's when i talked with my doctor. he gave me some blood tests... showed it was low t. that's it. it was a number. [ male announcer ] today, men with low t have androgel 1.62% testosterone gel. the #1 prescribed topical testosterone replacement therapy increases testosterone when used daily. women and children should avoid contact with application sites. discontinue androgel and call your doctor if you

the xlu down a little more than 1% today. these are crowded trades. josh talking about telecoms at 23 times earnings. they're crowded trades. so you do want to watch the rotations and be cognizant of them. >> the problem, though, is if you believe that the economy is not improving as much and rising yields are going to raise borrowing costs for corporations and consumers who, by the way, might see mortgage rates -- >> i think that's to brian's point. so josh makes the point the economy's getting better, rates are moving, bullish for the stock market, which i get. i don't believe it, though. i think the speed with which these rates are moving is what scared me. and i believe the rise in rates is -- a lot of it's happening in japan, and that's really what scares me. >> took out a five-year high from before the crash. >> but it's also -- >> why do you think that -- >> the economy's getting worse? >> yes. >> are we looking at a different series of data? >> case shiller's old, right? consumer confidence is a month old. >> a month old. i mean, what are we -

. >> xlu, utility etf, down 1.1%.et a census where utilities really are. >> still under pressure. >> still a lot of data on the way later this morning. we got claims. we'll get new homes and kansas city fed when we come back. goldman's chief u.s. equity strategist david kostin raised his target a couple days ago. he'll join us live and explain his bullish call. take a look at this morning's bright spots and there are a few. are you still sleeping? just wanted to check and make sure that we were on schedule. the first technology of its kind... mom and dad, i have great news. is now providing answers families need. siemens. answers. [ engine revving ] ♪ [ male announcer ] every car we build must make adrenaline pump and pulses quicken. ♪ to help you not just to stay alive... but feel alive. the c-class is no exception. it's a mercedes-benz, through and through. see your authorized mercedes-benz dealer for exceptional offers through mercedes-benz financial services. the ocean gets warmer. the peruvian anchovy harvest suf